Is Chime Accepting PPP Loans? Your Complete Guide To PPP Loans

Currently, Chime is not able to accept business transactions, including deposits and loans for business. Therefore, Chime is not accepting PPP loans and if you apply for SBA or PPP loan then your loan application will be rejected and sent back to the IRS. However, Chime accepts PPP loan deposits. Moreover, if you got approved for a Paycheck Protection Program (PPP) loan from a lender compliant with Chime bank then you will be able to get that loan amount deposited into your Chime spending account.

Key Takeaways

• Chime is a very renowned American financial technology company and it provides fee-free mobile banking services
• If you open an account with Chime then you will get a Visa debit card and you will be able to access your account via an online banking system
• The paycheck Protection Program (PPP) is a special type of loan program which is backed by the Small Business Administration (SBA)
• There are two types of PPP loans available: First Draw PPP loan and Second Draw PPP loan

What Is A PPP Loan?

PPP stands for Paycheck Protection Program and it is a special type of loan program which is backed by the Small Business Administration (SBA). The PPP loans have a mission and it’s helping small business owners keep their workers on the job during the coronavirus pandemic. There are two types of PPP loans available. They are – 

1. First Draw PPP loan

2. Second Draw PPP loan     

1. First Draw PPP Loan

If you have never received a PPP loan then you could be eligible for a First Draw PPP loan. The SBA allows you to use this money to:

1. Fund payroll costs

2. Pay mortgage interest

3. Pay rent

4. Cover utilities

5. Pay pay-worker protection costs related to COVID-19

6. Cover uninsured property damage resulting from looting or vandalism that occurred in 2020

7. Pay certain supplier costs and operational expenses 

How much money you could borrow through the First Draw PPP loan depends on the number of employees you have and the size of your payroll. You can get up to $10 million as a loan. According to the SBA, the average PPP loan is $107,000, and 86.5% of PPP loans are less than $150,000.   

2. Second Draw PPP Loan     

This type of PPP loan is for business owners who have already received a PPP loan previously. You can use the Second Draw PPP Loan for the same purposes as a First Draw loan. The interest rate of the Second Draw PPP Loan is the same as the First Draw loan and it is a 1% interest rate. The amount of loan you can borrow is the 2.5 times average monthly 2019 or 2020 payroll costs for your business. The loan amount of the Second Draw PPP Loan is capped at $2 million. You can get your PPP loan money on Chime if your lender is – 

1. Benworth

2. Fountainhead

3. DreamSpring

4. Harvest Small Business Finance

5. SEDCO

List of Banks Accepting Payroll Protection Program (PPP) Loan Applications

Below is the list of Banks that are currently accepting PPP loan applications – 

America First Credit Union American Lending Center Ameris Bank AmPac Business Capital AltCap Atlantic Capital Bank Bankers Trust Bank of America Bank of Hope Bank of the West BBVA Black Business Investment Fund Florida BlueVine BMO Harris BOC Capital Byline Bank Cathay Bank Center State Bank Centerstone SBA Lending Chase Bank Citibank Citizens Bank Compeer Financial Colorado Enterprise Fund Comerica  Cross River Bank EagleBank Eastern Bank East-West Bank Enterprise Bank and Trust The Enterprise Center Capital Corporation  Falcon National Bank Fifth Third Bank FirstBank

First-Citizens Bank First Financial Bank First General Bank First Horizon Bank First IC BankFive Star Bank Fountainhead SBF LLC Frost BankFulton Bank Growth Capital Harvest Small Business Finance HOPE Credit Union Independent Bank The Latino Economic Development Center Liberty Bank MBE Capital Partners Mountain West Bank M&T Bank Navy Federal Credit Union Newtek Small Business Finance, Inc. NexTier Bank Northfield Savings Bank Open Bank Opportunity Resource Fund Pacific Western Bank People Fund Pinnacle Bank PNC Bank Prestamos CDFI Profinium  Radius Bank Raza Development Fund Regions

Renaissance Community Loan Fund Renaissance Economic Development Corporation Rural Community Assistance Corporation Seattle Bank Small Business Assistance Corporation Sunrise Banks Synovus Bank TD Bank Trustmark National Bank Umpqua Bank Union Bank and Trust U.S. Bank Valley Economic Development Partners Wallis Bank Wells Fargo Zions Bank

Eligibility To Apply For PPP Loans

Not everyone can get PPP loans. The SBA has some guidelines about the eligibility to apply for PPP loans. Let’s check them out!

Eligibility To Apply For First Draw PPP Loan 

According to SBA, the following entities can be eligible for the First Draw PPP Loan – 

1. Sole proprietors, independent contractors, and self-employed persons

2. Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)

3. Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans’ organization, or tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:

a) 500 employees, or

b) That meets the SBA industry size standard if more than 500

4. Any business with a NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location 

Eligibility To Apply For Second Draw PPP Loan 

According to SBA, the following entities can be eligible for the Second Draw PPP Loan –

1. Previously received a First Draw PPP loan and will or has used the full amount only for authorized uses,

2. Has no more than 300 employees, and

3. Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

PPP Loan Forgiveness Terms

PPP loan borrowers might be eligible for Paycheck Protection Program (PPP) loan forgiveness. Below are the terms of PPP loan forgiveness – 

First Draw PPP Loan Forgiveness Terms

A First Draw PPP loan borrower might qualify for full loan forgiveness if the 8- to 24-week loan period cover the following loan disbursement:

1. Employee and compensation levels are maintained,

2. The loan proceeds are spent on payroll costs and other eligible expenses, and

3. At least 60% of the proceeds are spent on payroll costs

Second Draw PPP Loan Forgiveness Terms

A Second Draw PPP loan borrower might qualify for full loan forgiveness if the 8- to 24-week loan period cover the following loan disbursement:

1. Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan,

2. The loan proceeds are spent on payroll costs and other eligible expenses, and

3. At least 60% of the proceeds are spent on payroll costs

FAQs About Is Chime Accepting PPP Loans?

References:

1. https://www.chime.com/blog/your-complete-guide-to-ppp-loans/
2. https://en.wikipedia.org/wiki/Paycheck_Protection_Program

Last Updated on October 29, 2022 by Magalie D.